ZX's (HKG:9890) subsidiary Yuanda Future signed a memorandum of cooperation with Hangzhou Kaixing to jointly invest in an artificial intelligence firm, tentatively named, Jiyi Company, according to a Thursday filing with the Hong Kong bourse.

Under the agreement, Yuanda Future will invest 10 million yuan for a 10% stake in Jiyi.

Jiyi will be engaged in the development of commercial applications of AI large models and AI engines for gaming, film, television, and other entertainment sectors.

The memorandum is non-binding and valid until April 30, with the final investment subject to due diligence.

The company's share prices were up by 4% at the end of trading.